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AVC's, but self employed now- now what?

My o/h used to work f/t & contributed towards avc, he's just got a lump sum as the fsa found there was some sort of mis-sell or something.
Anyways, my question is, are avc's like a pension?, or should he get a new pension altogether as he's self-employed? :confused:
Any advice is appreciated, thanks in advance :)
No one said it was gonna be easy!

Comments

  • dunstonh
    dunstonh Posts: 118,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Anyways, my question is, are avc's like a pension?

    Yes.
    or should he get a new pension altogether as he's self-employed?

    He cannot pay into an AVC as that is linked to an occupational pension offered by an employer. Being self employed, that option is not available to him
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • shays_mum
    shays_mum Posts: 1,694 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Sorry dunstonh, i meant favc!, would it be better to stick to this, or get a brand new pension?, i believe you get tax relief on pension contributions if your self-employed, but is that the same for favc?, thanks am so confused as am just looking for a pension for our old age!!
    No one said it was gonna be easy!
  • dunstonh
    dunstonh Posts: 118,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    He still cannot pay into an FSAVC. Even though they were made obsolete in April 06 and are effectively personal pensions now. He needs to look at stakeholder/personal pensions or SIPPs. He can transfer the FSAVC into the new pension or he can keep it paid up where it is.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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